Business, international

THE RACE FOR NEW DRUGS HOTS UP

Article Abstract:

Many Indian pharma companies are working towards new drug discoveries. Among them, Dr Reddy's Laboratories (DRL) is developing an anti-diabetic drug and has just received the first installment of $4.2 million from the Dutch pharmaceutical major, Novo Nordisk, in return of the rights for the drug. DRL is also working on an anti-cancer pill. DRL speeds around 2.2 percent of its turnover on research and development of which 75 percent is spent on new drug discovery. Ranbaxy Laboratories is also working on new drugs for treatment of prostrate enlargement, asthma and cancer. By October 1998, Ranbaxy hopes to make an Investigation of New Drugs application for its potential prostrate drug. Ranbaxy spends around 4.5 percent of its turnover on research and development, 75 percent of which goes to new drug discovery. The Rs810 crore Dabur has also ventured into cancer research and is working on paclitaxel, the generic name ofr taxol. It has developed a form of pactitaxel which has a 40 percent response rate against ovarian cancer. When combined with other drugs like cisplatin, the response rate increases to 90 percent. Wockhardt and Nicholas Piramal are all set to venture into drug research. Workhardt is constructing a state-of-art research facility while Nicholas Piramal bought one from Hoechst Marion Roussel for Rs20 crore. As of now DRL and Ranbaxy are reportedly the front runners in the race for new drugs. Ranbaxy has an advantage over DRE in that it has more tie-ups with national laboratories on new drug development and it has also made better use of the funds it has availed from the government. (tsm)

Comment:

Is developing anti-diabetic drug and is also working on anti-cancer pill

MUMBAI GETS A NEW ROAD MODEL

Article Abstract:

The Government of Maharashtra plans to construct 51 flyovers in Mumbai covering a total length of 36.5 km by 2001 AD. The state government has started work on 31 flyovers and the western express highway at Goregaon is nearing completion. Over 29 flyovers will be commissioned in the suburbs in 1999. The work will be overseen by the Maharashtra State Road Development Corporation (MSRDC). The projects include the Mumbai-Pune expressway and a road bridge over the sea from Bandra to Worli. The flyovers are expected to cost Rs1,500 crore. The Mumbai-Pune expressway is expected to cost Rs1,550 crore. MSRDC has raised Rs1,170 crore through a bond issue. The Mumbai Metropolitan Regional Development Authority will lend Rs600 crore, the Mumbai Municipal Corporation will lend Rs125 crore and the state government will lend Rs200 crore for the projects. MSRDC plans to start collecting toll at five of the flyovers and at the four entry points into Mumbai by January 1, 1999. (tsm)

IT'S NOT TIME TO LIGHT UP, YET

Article Abstract:

The Finance Ministry of the Government of India has laid down stringent conditions for Rothmans of Pall Mall for entering India. It has to set up a greenfield project to manufacture cigarettes apart from having Indian shareholders in the company. It has to export 75 percent of its output. ITC, the company which is expected to be hit most by the entry of Rothmans, is saying that there would be a significant loss of revenue to the Government. Rothmans has assured the Foreign Investment Promotion Board (FIPB) that it would not remit any dividends for the first 7 years of its operations. After getting the permission of the Foreign Investment Promotion Board, the $150 million proposal of Rothmans will have to the approved by the Cabinet Committee on Foreign Investment of the Government. (tsm) (kvr)